Foreign Investors Dump $100 Billion in KOSPI Stocks as Liquidity Policy Weakens Won
Updated
Updated · en.sedaily.com · Jul 7
Foreign Investors Dump $100 Billion in KOSPI Stocks as Liquidity Policy Weakens Won
1 articles · Updated · en.sedaily.com · Jul 7
Summary
$100 billion in net foreign selling has hit the KOSPI this year, with investors offloading 151.894 trillion won of shares and adding pressure on the won and its exchange-rate swings.
Government liquidity measures helped create that exit window by boosting National Pension Service equity exposure, delaying rebalancing and allowing single-stock leverage products tied to Samsung Electronics and SK hynix.
41 of 125 trading days this year saw the KOSPI move more than 3%, including 11 of 21 sessions in June; moves above 5% occurred on 25 days, underscoring how sharply volatility has intensified.
Bond-market strain and rate uncertainty are compounding the stress, as delayed pension rebalancing pushed up yield pressure while investors remain unsure how far and how fast the Bank of Korea will raise rates.
Regional currency turmoil is adding to the risk: the won's average daily move stayed elevated at 0.55% in the second quarter as a weak yen and falling Asian currencies revived comparisons with the 1997 FX crisis.